Political economy of the sovereign debt crisis: The limits of internal devaluation

Industrial Law Journal

Volumn 41, Issue 3, 2012, Pages 254-275

  Armingeon, Klaus ^a   Baccaro, Lucio ^b  

^a UNIVERSITY OF BERN   (Switzerland)

^b UNIVERSITY OF GENEVA   (Switzerland)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84866370298     PISSN: 03059332     EISSN: 14643669     Source Type: Journal    
DOI: 10.1093/indlaw/dws029     Document Type: Article

References (47)

1. See J. Weidmann, 'Rebalancing Europe', speech at Chatham House in London, 28 March 2012: 'The typical German position could be described as follows: the deficit countries must adjust. They must address their structural problems. They must reduce domestic demand. They must become more competitive and they must increase their exports.' http://www.bundesbank.de/download/presse/reden/2012/20120328.weidmann.en.php (accessed 1 May 2012).
2. European Commission, The Economic Adjustment Programme for Ireland, Directorate-General for Economic and Financial Affairs, Occasional Paper No 76 (2011), at p 13.
3. F. Scharpf, 'Monetary Union, Fiscal Crisis and the Preemption of Democracy', Max-Planck-Institute Cologne Working Paper (2011).
4. AMECO database, http://ec.europa.eu/economy_finance/db_indicators/ameco/index_en.htm, accessed on 6 May 2012.
5. see also K. Whelan, 'Macroeconomic Imbalances in the Euro Area', European Parliament: Directorate General for Internal Policies, Policy Note (2012), at p 7.
6. AMECO database (accessed 24 April 2012).
7. E. Saltari and G. Travaglini, Le radici del declino economico: occupazione e produttività in Italia nell'ultimo decennio (Novara: UTET, 2006).
8. L. Tronti, 'La crisi di produttività dell'economia italiana: scambio politico ed estensione del mercato' (2009) 43 Economia e Lavoro139.
9. F. Lucidi and A. Kleinknecht, 'Little Innovation, Many Jobs: An Econometric Analysis of the Italian Labour Productivity Crisis' (2011) 34 Cambridge Journal of Economics 525.
10. E. Hein and A. Tarassow, 'Distribution, Aggregate Demand and Productivity Growth: Theory and Empirical Results for Six OECD Countries Based on a Post-Kaleckian Model' (2010) 34 Cambridge Journal of Economics 727.
11. R. Vergeer and A. Kleinknecht, 'The Impact of Labour Market Deregulation on Productivity: A Panel Data Analysis of 19 OECD countries (1960-2004)' (2011) 33 Journal of Post-Keynesian Economics 371.
12. P. Krugman, 'Lands of Ice and Ire,' The Conscience of a Liberal, http://krugman.blogs.nytimes.com/2010/11/24/lands-of-ice-and-ire/ (accessed 10 June 2011).
13. OECD, Economic Surveys. Iceland 2009 (Paris, OECD, 2009), at p 20.
14. P. De Grauwe, 'The Governance of a Fragile Eurozone', CEPS Working Document No. 346
15. De Grauwe, 'Fragile Eurozone', above n.9, at pp 6-7.
16. IMF, Fiscal Monitor. Balancing Fiscal Policy Risks. April 2012 (Washington, DC: IMF, 2012).
17. P. Gourevitch, Politics in Hard Times: Comparative Responses to International Economic Crises (Ithaca, NY: Cornell UP, 1986).
18. P. Hall and D. Soskice, 'An Introduction to Varieties of Capitalism' in P. Hall and D. Soskice (eds), Varieties of Capitalism. The Institutional Foundations of Comparative Advantage (Oxford: OUP, 2001).
19. Thelen, Kathleen 2001: "Varieties of Labor Politics in the Developed Democracies", in: Varieties of Capitalism. The Institutional Foundations of Comparative Advantage, n 13 above.
20. IMF, Balancing Fiscal Policy Risks, at pp 40-45.
21. Sachverstädigenrat zur Begutachtung der wirtschaftlichen Lage, Chancen für einen stabilen Aufschwung. Jahresgutachten 2010/11 (Wiesbaden: Statistisches Bundesamt, 2010), at pp 87-88.
22. See http://www.corriere.it/economia/11_agosto_08/lettera-trichet_238bf868-c17e-11e0-9d6c-129de315fa51.shtml, (accessed 3 May 2012).
23. EIRO online, 'Agreement Signed on Growth, Employment and Guaranteed Pensions,' http://www.eurofound.europa.eu/eiro/2011/02/articles/es1102031i.htm, (accessed 27 July 2011).
24. D. Held 1991: Political Theory Today (Palo Alto, CA: Stanford University Press).
25. Calculated from http://ec.europa.eu/public_opinion/cf/index_en.cfm.
26. For recent examples, see J. Weidmann, 'Rebalancing Europe', n 1 above.
27. W. Schäble, 'Why Austerity is Only Cure for the Eurozone', Financial Times, 5 September 2011.
28. G. Rachman, 'No Alternative to Austerity', Financial Times, 30 April 2012.
29. R. Rajan, 'The True Lessons of the Recession: The West Can't Borrow and Spend Its Way to Recovery' (2012) 91 Foreign Affairs 69.
30. O. Blanchard, G. Dell'Ariccia, and M. Paolo, 'Rethinking Macroeconomic Policy', IMF Staff Position Note, SPN/10/03 (2010).
31. P. Krugman, 'It's Baaack: Japan's Slump and the Return of the Liquidity Trap', Brookings Papers on Economic Activity, 1998, 137-205.
32. G. B. Eggertsson and P. Krugman, 'Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo Approach' (2011), unpublished manuscript, on file with authors.
33. See http://www.nzz.ch/nachrichten/wirtschaft/aktuell/der_regenmacher_1.15284742.html (accessed 26 February 2012).
34. http://epaper.nzz.ch/nzz/forms/page.htm (accessed 26 April 2012).
35. S. Merler and J. Pisani-Ferry, 'Sudden Stops in the Euro Area' (2012) Bruegel Policy Contribution 2012/06.
36. The change agreed to Article 136 TFEU, which is designed to provide a legal basis to the European Stability Mechanism, was agreed at the European Council meeting of 16-17 December 2010, and is due to come into force in January 2013.
37. The amendment was made under the simplified revision procedure set out in Art 48(6) TEU, which allows Treaty changes which do not involve an extension of the Union's competences to be agreed by the Council
38. F. Giavazzi and M. Pagano, 'Can Severe Fiscal Contractions Be Expansionary? Tales of Two Small European Countries', NBER Working Paper No 3372, 1990.
39. A. Alesina and R. Perotti, 'The Welfare State and Competitiveness' (1997) 87 American Economic Review 921.
40. A. Alesina and S. Ardagna, 'Tales of Fiscal Adjustments' (1998) 27 Economic Policy 489.
41. A. Alesina and S. Ardagna, 'Large Changes in Fiscal Policy: Taxes Versus Spending', NBER Working Paper No 15438, 2009.
42. For textual evidence that the ECB subscribes to the expansionary fiscal contraction thesis, see J.-C. Trichet, 'Central Banking in Uncertain Times: Conviction and Responsibility' Symposium on Macroeconomic Challenges: The Decade Ahead, Jackson Hole, Wyoming, 27 August 2010.
43. IMF. 'Will It Hurt? Macroeconomic Effects of Fiscal Consolidation' in IMF (ed), World Economic Outlook: Recovery, Risk, and Rebalancing (Washington, DC: IMF).
44. R. Perotti, 'The "Austerity Myth": Gain without Pain?', unpublished manuscript, Bocconi University (2011), on file with authors.
45. T. Iversen and D. Soskice, 'Modern Capitalism and the Advanced Nation State: Understanding the Causes of the Crisis' in N. Bermeo and J. Pontusson (eds), Coping with Crisis: Government Responses to the Great Recession (New York: Russell Sage, 2012).
46. D. Soskice, 'Divergent Production Regimes: Coordinated and Uncoordinated Market Economies in the 1980s and 1990s' in H. Kitschelt, P. Lange, G. Marks and J. D. Stephens (eds), Continuity and Change in Contemporary Capitalism (Cambridge: CUP, 1999).
47. Hall and Soskice, 'Varieties of Capitalism, n 13 above'.